After the Tenderoffer co will own more than third of shares
They bought 20 mil on the open market and now buying another 25 mil... I know they are not executing on the business front but owning so much of the stock is a very strong statement. I'm holding and lets see what's next.
A good reason for buying is to lend support at a level above $1/share...I believe that below that risks being de-listed. They also mentioned a plan for a reverse 3-1 stock split which, in theory, raises the price from say $1.25/share to $3.75/share which may serve the purpose of making the stock more attractive to institutions who do not want "penny" stocks.
Actually they are quite clear about the purpose of the offer:
“The Offer provides shareholders (particularly those who, because of the size of their shareholdings, might not be able to sell their Shares without potential disruption to the Share price) with an opportunity to obtain liquidity with respect to all or a portion of their Shares without potential disruption to the Share price.”